Business, 15.01.2020 06:31 Broov

Your bond portfolio consists of $30 million worth of treasury strips with 7 years to maturity, and $10 million of treasury notes with a macaulay duration of 3 years. the term structure is flat, and all spot rates are 3%.
what is the modified (not macaulay) duration of your portfolio?

a) 3 years
b) 4 years
c) slightly less than 4 years
d) slightly greater than 4 years
e) none of these

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Your bond portfolio consists of $30 million worth of treasury strips with 7 years to maturity, and $...

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